Cork care home warns of ‘existential crisis’ as it seeks increased HSE funding

Facility caring for 128 residents says a revised funding model is needed to support staffing and services

Built in 1994, St Luke's cares for 128 residents and offers dementia care and physiotherapy services.

A care facility in Cork claims it faces an “existential crisis” over funding as it seeks to change its charitable status in an effort to stem operating losses.

Lobbying disclosures from the St Luke's care home in Blackrock show it asked politicians to try to change the status of the home from an S39 not-for-profit organisation to an S38 body. The switch would typically see an increase in funding from the HSE.

The home said the change would help “achieve pay parity” with HSE colleagues and allow it to develop further dementia services at the care home.

Fianna Fáil TD Seamus McGrath met with representatives following lobbying efforts by the home. He said the home’s current financial situation was concerning and backed the transition to a more centrally-funded model that would facilitate across-the-board pay increases.

“I haven't looked under the bonnet in terms of their financial position, but in terms of what they presented to me, they presented it as a very serious issue for them, and they very much believe the staff deserve to have the pay increases,” Mr McGrath said.

“They very much said that they would be under pressure in terms of retention of staff and recruiting additional staff, unless they put in a position to give them those kind of parity pay increases.” 

Financial filings for 2025 showed St Luke’s Charity CLG, with an address at Castle Road, Mahon, ended the year with reserves of €4.4m and retained earnings of €24.3m. Records show the home has lobbied for the change in charitable status since 2022.

“They provide vital services in the area. I think having a more structured public funding source would be welcome for them,” said Mr McGrath. “It's nothing to do with privatising or anything like that, it's just about financial stability.” 

Built in 1994, St Luke's cares for 128 residents and offers dementia care and physiotherapy services.

According to a recent health watchdog Hiqa report into the home, approximately 60% of the 128 residents were assessed as having maximum or high dependency needs.

At the time of inspection in August 2025, there were vacancies for four whole-time equivalents that had yet to be filled, with workload aggregated by staff working extra shifts and the use of agency workers.

Mr McGrath was lobbied alongside Taoiseach Micheál Martin, though McGrath said he was unaware of a meeting occurring between the home and the Taoiseach. St Luke’s did not respond to requests for comment.